Monopoly allegations, Gani Thaçi and ‘secret contracts’
Balkan Insight has revealed that contracts worth hundreds of thousands of euros signed between Kosovo Insurance Bureau and private firm “Alt3c” has created a multimillion dissatisfaction insurance industry. Two of the companies have charged that this contract creates’ typical monopoly. Through this contract BKS has obliged all companies use the same system created by this private company. Central Bank, the supervisory authority of the SAC, has concluded that the contract has high costs and that it is studying the market for this service.
More than two years ago, on October 13, 2013, meeting of the General Assembly of the insurance industry was a decision that suspicion by some members of the industry.
The beneficiaries came signatures “Alt3c”, which was committed to implement a software system for the needs of insurance companies.
But in addition to representatives of ten companies profitable insurance business there were Faton Abazi, director of the Kosovo Insurance Bureau and deputy Gani Thaçi.
SAC Statute obliges the executive director to represent the Bureau in the General Assembly.
Balkan Insight requested a comment from SAC and Gani Thaçi why it was necessary that the deputy was present. He did not answer.
The decision was taken that day in favor of private firm “Alt3c”.Two of its shareholders, Ilir rifle director and Ardian Kelmendi, have fellowship with Kushtrim Thaci, son Gani Thaci. On account Kushtrim Facebok Thaci are posted pictures where he is seen in the company of rifle and Kelmendi. One of them has the inscription “with dostat”. Currently his Facebook account was closed.
Balkan Insight has obtained the minutes of the meeting held on October 31 of 2015.
It shows that two of the ten companies have strongly opposed the signing of the contract with the private company.
They have estimated that such a decision creates a monopolistic position and that the firm is reasonable that each of the companies have their own software.
But the decision of the Assembly requires all insurance companies for four years to use the software for bonus-malus system created by the firm “Alt3c”.
The contract between the SAC and the company “Alt3c”, was signed on 1 January 2014.
This contract will be in force for a period of 4 years from the date of its signing, com- petition from 1 January 2014 to the date January 1, 2018.
Bonus-malus system could include any insured who possess the policy of compulsory insurance of vehicles.
The significance of this is that the bonus system will benefit motorists and disciplined and they are careful in traffic and at the same time by Malusi irresponsible drivers who cause accidents will be at a disadvantage.
If the network appears that the driver has a good story, then it receives discount for next year in motor vehicle insurance.
Kosovo Insurance Bureau was established on 1 August 2011 and the Central Bank to the supervisory authority.
BKS has the status of National Security Bureau with unlimited powers, it is the national representative to the Council of Bureaux and is responsible for all obligations arising from membership in the Green Card system. SAC is also the Compensation Fund for the payment of damages provided by law.
SAC powers are stipulated in the Law on Compulsory Motor Liability Insurance approved in the Assembly in June 2011.
Central Bank: Contract costly, untested market and risk
Insurance Assembly decision was criticized by the Central Bank as the supervisory authority of the industry. Balkan Insight has obtained a report examining the Insurance Supervision Department of the CBK. The examination is conducted between the dates 2 to 23 February 2015.
CBK has concluded that in 2014 spent 401 thousand euros for the 85 bonus-malus system.
CBK also concluded that the contract between SAC and “Alt3c” has provided the company within three months of the offer price of bonus-malus software application.
“But during the examination is not SAC ofrtuar proof that the seller has sought to fulfill the obligation pursuant contract,” reads the examination report.
Also the report states that despite the SAC demand and sufficient time has not made the functioning of the Insurance Information Center through which the data generated will be necessary for the implementation of the bonus-malus system.
“Simultaneously mospronësia software application has led the SAC service contract with operators concerned, a contract which is characterized by high cost, not tested in the market and which may expose the SAC to legal risk,” said Central Bank report.
Balkan Insight has requested a comment from the Media Office of the Central Bank regarding these findings. CBK has not answered.
Balkan Insight asked Recep Idrizaj, director of the company “Elsig” and kryuesuesin General Assembly Insurance why there was no public tenders and the reason for the commitment of this company. Also inquired about the annual amount the company receives from the SAC.
“I think that we as private company or association of private companies did not submit the Law on Public Procurement. Therefore I believe that] matters raised by your side are not relevant to the public interest and as such certainly enter into transactions with personal interest and the law forbids their publication without the consent of both parties, “says Idrizaj.
Meanwhile Ilir rifle, director of the firm “Alt3c”, spoke on behalf of the company for Balkan Insight. Stated that the company that runs it was no merit to conclude a contract with Kosovo Insurance Bureau.
“Our company is involved in the insurance field for 11 years now and I think the right experience and perhaps also the biggest one in the region, in terms of liability insurance,” says rifle.
Balkan Insight has asked for the rifle of deputy friendship with the son of Kosovo Insurance Bureau.
“In all the work we have passed the committee after committee (composed of directors of insurance companies) and implementing partner BKS is not only what we negotiate with.Having in mind these facts means that the recognition or zt. Thaci clarion call is irrelevant, “says rifle. But based on records obtained by Balkan Insight appears that part of the committee that negotiated with Signature” Alt3c “is Faton Abazi, director of the Kosovo Insurance Bureau.
Also in addition to the involvement of the Director in negotiating committee deputy Gani Thaçi participated in the General Assembly meeting of members of the insurance industry to discuss regarding the offer of the company “Alt3c”.
Kosovo Insurance Bureau in giving an answer Balkan Insight has notified the reasons why this company is contracted.
“General Assembly as the supreme organ of the SAC’s decision Alt3c Sh.pk has selected the company as this company has been years in the insurance market for the development and maintenance of software in the Industry Insurance Kosovo “reads the response of the SAC.
… Bureau also says that the company “Alt3c” under the contract paid € 1.10 for every police TPL issued.
Balkan Insight asked SAC regarding the annual amount the company wins the contract.
BKS has said that is difficult to provide this kind of information.
“… We have nothing against sending for wrong doing but was informed that information regarding these questions we asked the Agency for Data Protection for a clarification whether the media can give this kind of information, because in future may face in court with the insurance companies that are part of the bureau, “said SAC response.
But the Agency for Protection of Personal Data told Balkan Insight that is not in its mandate to handle such requests.
The agency says it has an obligation to deal with the processing of data of natural persons.
Monopoly criticism are part of the minutes of the General Meeting of the Insurance Industry, the document which provided Balkan Insight.
Commission report on the negotiations with the company “Alt3c” bonus-malus system was on the agenda at the meeting held on 13 October 2013.
Ibrahim Kastrati, chairman of the commission, said that based on the record have held three meetings with representatives of the private firm that has been discussed for hours.
Kastrati told the members of the assembly that the company’s last offer “Alt3c” is € 1.10, plus VAT for a printed security officers.
Based on the record before the assembly members also pleaded Faton Abazi, director of SAC, who was also a member of the committee to negotiate with the firm “Alt3c”.
Abazi said that within three months after the contract private company is obliged to inform the Kosovo Bureau of software value.
“Software can buy the insurance companies after the expiry of the contract after four years,” said Abbas.
But this meeting had expressed objections Arben Breshani, then director of the insurance company “Insig”.
Breshani, based on the record said that signing the contract with the private firm creates a monopoly situation.
“That should unite towards breaking this monopoly so that companies will either buy the software as a whole, or each of the companies could have their programs that could be reported to the Central Bank of Kosovo and the Bureau of Kosovo Security “, stated Breshani, based on this record.
Also in the record indicated that there theskuar Breshani that “… the company ‘Insig’ no parallel to this program which will function could be made when allowed by the CBK. Now we come to a situation where so much has asked the company “Alt3c” will pay. But to think about an alternative program. ”
Balkan Insight has asked the company “Insig” allegations that are made on behalf of the company at the meeting.
Altin Majko, the current director, said that in this matter is best papers to the Director of Kosovo Insurance Bureau, Chairman of the Administrative Council or Assembly Insurance.
Majko said that on this issue the Central Bank has conducted examination but that insurance companies have not yet been submitted final report of examination.
Another member of the congregation that was discussed at the meeting was Minister Recep Idrizaj, director of the company “Elsig”.
He stated that he was informed about the proposal of the company by Eleonora Ndrecaj, a member of the committee of employees in the company he manages.
Idrizaj had stated that the contract is pro connection with this private firm, but had objected to something else.
“Regarding the issue of purchasing expensive software will still be maintenance. Therefore the issue of purchase does not seem very logical, “stated Idrizaj.
Roland also addressed criticism Kaçani firm “Sigma”.
He expressed regret over the discussion that is taking place.
Kaçani stated that the issue is alarming since it is for typical monopoly.
“… And not even worth discussing price. It is arguable that what should be done if tomorrow the company “Altec” requires the highest price for a policy. Furthermore, this is an investment that is making the insurance industry and the company “Sigma” does not have the right to make investments, but this right has the company’s board in Vienna, “he said Kaçani, based on the record.
He recommended that this be discussed with the Central Bank who can give the green light to proceed with this matter.
Kaçani added that urgently need to hold a meeting with representatives of the CBK to realize the fact that this process is incompatible with the monopoly.
According to him, each company must have its own system and to maintain regular contacts with the Central Bank and Kosovo Insurance Bureau.
He responded saying that Abbas was Kaçani himself that has voted for the authorization of the Committee negotiated with firmkën “Alt3c”.
“… The members of the General Assembly stated that the work of the commission will be based on 90 percent, and is now said to monopoly,” Abbas declared.
Balkan Insight has sent questions Kaçani to get a comment on the allegations he made in the meeting of the General Assembly of the Insurance Industry. Still no answer.
But after discussions at the meeting of the General Assembly decided to approve the company’s offer “Altec” ,.